Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

EUR/USD Technical Analysis

Published 11/08/2018, 01:36 PM
Updated 07/09/2023, 06:32 AM

Technical analysis is often met with skepticism. It is often claimed to be nearly useless. Nevertheless, many hedge funds and seasoned investors are relying on it. It is our main workhorse as well. The following example gives an overview of our EUR/USD technical analysis over the course of the past year.
October 2017

We were bullish throughout the 2017 EUR/USD cycle. On February 8th 2018, we forecasted one last swing into the 1.255-1.265 area before the cycle is complete and reverses. The EUR/USD went straight into our target 8 days later. A reversal occurred on February 16th.
February 2018

The subsequent sideways pattern into April 2018 was viewed by an overwhelming majority of technical analysts as a triangle that resolves to the upside. We forecasted the exact opposite – a resolution to the downside. Our forecast got confirmed and the EUR/USD quickly corrected down towards 1.15.
March 2018

One of the main challenges within the Elliott Wave Framework is to assess the duration of trends. Elliott wave analysts get often fooled into calling a trend reversal too early. Our methods account for this problem, which we see very often among chartists. The next chart below shows our forecast on May 14th, 2018.

May 2018

It is important to reassess all new information as prices move along. A more precise forecast results from that. All in all, there is little value added to stick to a 1.12 forecast just because it was made around the top. Price action usually reveals more about the short-term path. It is almost impossible to forecast on March 1st what path is likely during the Month of June. That is very different just shortly before as the subsequent market action revealed.
August 2018

What is likely to happen going forward? Has the EUR/USD bottomed yet? It probably has not bottomed yet. Sentiment and position readings moved from one extreme to another for the USD during the course of this year. A sideways correction is most likely at the current stage. The correction intends to relieve pressure from the drop, which we witnessed throughout 2018. This implies that the paramount trend remains down despite sizable correction potential.
November 2018

Our premium EUR/USD analysis highlights the respective trends in more detail. Moreover, specific targets, as well as potential alternative scenarios, are discussed bi-weekly.

Latest comments

Hope so
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.